Have you noticed how the jobless rate has been bouncing around a lot lately? Up one week, down the next, so that we might even be lulled into a sense of complacency--or confusion. From an employer's perspective, this could either be good news or bad news. Are employees out there, or not? Are they any good? Why are they available? How do I know which ones are the good people to hire?
Related: Read Lisa Harrington's previous For the Manager column "Regarding leadership: How much is too much?"
Although it would be nice if we could just keep all of the good employees we already have, attrition is a reality, and the need to hire new employees is a business inevitability. Although the insurance industry is comparatively lucky: According to www.HRcapitalist.com, turnover rates for industries similar to ours are at 20 percent to 25 percent. But in the hospitality industry, for example, it's been cited at 37 percent to 100 percent, and for telemarketing it's even worse.
You have probably interviewed dozens of candidates over the years, and for some of us it's much easier than others. Here's a quick checklist of ideas for handling hiring: you have to listen.
Locate
We have so many more recruitment options now--newspapers, trade magazines, online services, recruiters, even Facebook. The trouble is that relying on these options is like shotgun sales: you're sending the word out to anyone who can read about a job that requires very specific skill sets, no matter which position in the agency it is. Remember the old life insurance prospecting joke? "Who's a prospect? Anyone who can fog a mirror!"
Perhaps you could try target marketing for new employees the way you do for clients. Of course, you'll want to prepare well. Review the job duties and be sure the job descriptions are up to date, then look for prospects in some new and original places. For great customer service reps, look at places where you have experienced great customer service. I once hired someone from a pizza joint. She was a great waitress. A few from our office were regulars at lunch, and she always remembered us. She turned out to be a terrific CSR. Or hire from within one of your target industries. If you sell to golf courses, you might talk to the vendor's representative who sells golf carts or fertilizer. That person knows the industry, has connections and just might be ready for a change.
Read the previous For the Manager column "You can't manage what you can't measure."
If you are going to advertise, go beyond the newspaper. Place an ad in appropriate trade magazines. If someone finds out about the position you have available because they are avid readers of one of our industry publications, then you know you have someone who is serious about a career in insurance.
Some recruiters have had success at the colleges: career days, alumni groups, business clubs and the like. Employee referral programs work very well, too.
Interview
When you get to the interview stage, it's just as important to be prepared. Having a list of questions that you ask each person is a great idea; consistency in the questions means you'll have a good basis of comparison when all the interviews start to run together in your head. Many of the profile services such as Omnia, Caliper and ZeroRisk provide questions. Setting up a phone interview first will give you a nice snapshot of a candidate's abilities with clients on the phone. Screen well, and don't be fooled by a great resume. These days, many are written by a service and don't show you much about the writing talents of the candidate. Look for great cover letters. When candidates are answering an ad online, there is usually an opportunity for them to put on a cover note. How well does the candidate do with the written word? Did he or she bother with a cover note? Did they use proper grammar, even in an online form? For many positions, a test of skills is in order, too. Do they really know the systems they claim to know?
To give a fresh perspective, it's not a bad idea to have more than one person interview the candidate. One final warning about interviews: Watch out for inappropriate questions. If the question isn't directly related to the actual work to be done, don't ask. Small employers are not exempt from this rule.
Select
Hire to your agency's unique culture. You want the candidate to be a great fit with your staff. If you haven't read the book "First, Break All the Rules: What the World's Greatest Managers Do Differently," by Marcus Buckingham and Curt Coffman, do so. It's a great read and explains why that fit, and having a friend or two at work, can improve productivity. One caution: Don't hire a bunch of people who are all "like each other" when it comes to skills and talents. Stagnation kills, and you need a variety of personality types and talent to make the best team. You have clients of all different types. Don't be afraid to hire someone without insurance experience. You have access to amazing training resources. When you are very sure you have the right person, make an offer they can't refuse with benefits, perks and extra pay for extra efforts like obtaining designations.
Train
Training starts with orientation to your agency. Take time to give the new employee introductions all around, the grand tour and a little history of the place. Allow each department manager 15 minutes to explain how their group fits into the whole. Review mission statements and the like.
Make an education plan, early in that first couple of weeks, to round out whatever skills the new employee needs to function well. Include professional skills in addition to the requisite continuing education and coverage classes. There are many wonderful sources and ideally you can have a senior staff person walk the new employee through the steps of your agency's best practices.
Engage
If you won't work to keep an employee, why bother hiring them? Turnover costs are too high to ignore--30 percent of salary, according to an estimate by the American Management Assn. One website provides a free "turnover calculator." Go to http://www.uwex.edu/ces/cced/economies/turn.cfm to figure your specific costs.
If you help employees care about the agency and its mission because you are committed to the industry and the community, you have a better chance of reducing turnover. Engage them in the growth of the business, and ask their opinions frequently. The younger generation is especially sensitive to making a difference and being heard. They want to make a contribution. Make use of all that fresh energy and let them create a plan to position your agency as a community leader.
Nurture
There should be a shared growth plan for each employee. What do you see as this employee's future at your agency? Share it with them, monitor their progress and maintain their personal growth plan. Even if you are a small agency and there aren't promotions to pass around, small increases in responsibilities within the same job title can make a big difference.
